RIM Seeks Sanctuary in Software

Embattled handset maker Research in Motion is making a move to play to its strengths in gadget software.

James Rogers

WATERLOO, Ontario (TheStreet) - Embattled handset maker Research in Motion(:RIMM) got some respite from its recent struggles on Tuesday by playing to its strengths in gadget software.

In a bold move, the Canadian company unveiled its BlackBerry Mobile Fusion software, which controls not only RIM devices, but also Apple(:AAPL) smartphones and tablets and gadgets running Google's(:GOOG) Android OS.
RIM unveiled its BlackBerry Mobile Fusion software on Tuesday.

Mobile Fusion lets users configure a host of devices, according to RIM, and can also be used to secure and protect lost and stolen gadgets. With many workers looking to set up their personal devices on corporate networks (a trend known as Bring Your Own Device, or BYOD), all-singing, all-dancing management software is key, says Panezic.

A beta version of Mobile Fusion is targeted to be available in January 2012 for select customers, with general availability expected in March.

The software certainly resonated with investors on Tuesday, likely thanks to the company's impressive reputation for security. RIM shares, which have plunged more than 70% in 2011, closed up 89 cents, or 5.4%, at $17.37.

Rocked by delayed product launches and increasingly intense competition from Apple and Google, RIM has bled smartphone market share this year as iPhones and Android devices become more accepted for use in the workplace.

Mobile Fusion, however, could help RIM claw back some enterprise market share, albeit with the acknowledgment that it needs to make room for Apple's iOS and Android. "If you can't beat'em, join'em," seems to be the ethos underpinning the company's latest software play.

Built on RIM's BlackBerry Enterprise Server (BES) software, Mobile Fusion also lets users securely push applications out to the company's PlayBook tablets, according to Panezic.

"We believe that the announcement of RIM's future plans for launching Mobile Fusion will help keep RIM's BlackBerry Enterprise Server in the enterprise, while adopting a BYOD culture," noted Martha Vazquez, an analyst at tech research firm Frost & Sullivan. "RIM's expansion into management of other device OS gives it a competitive edge in an existing stronghold for them - the enterprise segment."

Crucially, adds Vazquez, Mobile Fusion should help RIM keep its hardware foothold in the corporate arena. Enterprises looking to change over to other mobile operating systems are thus unlikely to get rid of BlackBerries altogether, she said, and can now keep a variety of smartphones and tablets under one management system.